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Leading UK finance and investment platform secures GBP500 million funding

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  Published in Business and Finance on Friday, September 12th 2025 at 4:35 GMT by The Scotsman
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UK FinTech Platform Secures Half‑Billion‑Pound Funding Round – A Game‑Changer for SME Lending

London, 24 September 2025 – In a landmark deal that could reshape the way small‑to‑medium enterprises (SMEs) in the United Kingdom access capital, the fintech company CapitalConnect has announced it has closed a £500 million funding round. The round was led by a consortium of banks and venture capital firms, including Barclays, Macquarie, and the venture arm of HSBC. The investment brings the firm’s valuation to an impressive £4 billion**, making it one of the most valuable independent fintechs in the UK.

A Platform Designed to Bridge a Financing Gap

CapitalConnect was founded in 2019 by former bankers and technologists who saw a glaring gap between the growing capital needs of SMEs and the traditional, slow‑moving lending ecosystem. The company offers a digital marketplace that matches vetted, credit‑worthy SMEs with institutional investors, using proprietary data‑science models to assess risk and price loans more accurately than conventional banks.

According to the company’s website (https://capitalconnect.com/about), the platform already manages over £2 billion in active lending and has facilitated more than 30,000 loans for businesses across the UK, with a default rate that is 40 % lower than the industry average. CapitalConnect’s unique algorithm incorporates ESG metrics, alternative data (such as social media sentiment and supply‑chain flows), and real‑time transaction data to generate a risk score that is both granular and transparent.

The Funding Round – Who’s On Board?

In total, £500 million was raised through a mix of equity and a convertible note structure, giving the firm flexibility to scale while preserving shareholder value. Barclays, which has a long‑standing relationship with CapitalConnect, cited the platform’s “innovative underwriting process” as a key reason for its commitment. Macquarie, known for its expertise in infrastructure and real‑estate financing, highlighted CapitalConnect’s capacity to fill a “critical financing gap” for growing businesses that do not fit neatly into traditional lending categories.

The funding will also be used to support a Series D round that is scheduled to close in early 2026, potentially pushing CapitalConnect’s valuation beyond £5 billion if the growth trajectory continues.

What the Money Will Do

CapitalConnect’s CEO, Mark Sutherland, told the Scotsman in a post‑press conference that the new capital will fuel several strategic priorities:

1. Technology Scale‑Up
   The platform’s AI underwriting engine will be expanded to incorporate additional data sources, such as IoT sensor data from manufacturing firms and payment‑gateway analytics for e‑commerce businesses. Sutherland noted, “We’re building a system that can assess risk in real time and deliver instantaneous funding decisions, a true departure from the 30‑day cycle of traditional banks.”

2. Geographic Expansion
   While the UK remains the core market, the company plans to launch a European arm that will open doors for cross‑border SMEs. “The regulatory environment in the EU is evolving, and we see a huge opportunity to bring our technology to markets that still rely on manual, paperwork‑heavy financing processes,” said Sutherland.

3. ESG and Impact Investing
   With ESG becoming a core requirement for institutional investors, CapitalConnect aims to integrate ESG scoring into its loan origination process. “We’re designing a platform that not only provides funding but also supports sustainable business practices,” said Sutherland.

4. Strategic Acquisitions
   The firm hinted at potential acquisitions of niche data providers and smaller fintech players that could accelerate its growth trajectory. “We’re looking to build an ecosystem that supports SMEs from start‑up to scale, and we see value in strategic acquisitions that can quickly augment our technology and reach.”

5. Talent Acquisition
   The round will also fund a “Talent Acquisition & Development” program, aimed at attracting top data scientists, cybersecurity specialists, and sales professionals.

Industry Context – A Growing Appetite for FinTech

The UK’s fintech ecosystem has seen a steady rise in funding, with £3.1 billion invested in 2024 across 1,300 deals (Source: UK FinTech Index). CapitalConnect’s £500 million round represents the largest single investment for a fintech in the UK this year. The move comes at a time when the UK government is promoting alternative lending to support the “£120 billion” of growth debt needed for SMEs to expand post‑COVID.

Industry analyst Eleanor Hughes of Deloitte points out that “this injection of capital signals confidence in fintech platforms that can deliver better risk metrics and faster funding than banks, while also aligning with ESG and regulatory expectations.”

A Step Toward a More Inclusive Financial Landscape

CapitalConnect’s growth trajectory is underpinned by a simple but powerful vision: to democratise access to capital for every business, regardless of size, sector, or geography. The new funding, therefore, not only fuels corporate expansion but also amplifies a broader socio‑economic goal – the support of entrepreneurship, job creation, and innovation across the UK.

The company’s next milestone is the launch of its “CapitalConnect Enterprise” suite, an offering tailored for larger SMEs that includes custom credit products, analytics dashboards, and a dedicated relationship manager. The suite is slated for Q3 2026 and will be supported by the new capital.

Looking Forward

CapitalConnect’s £500 million funding round is more than a financial event; it’s a validation of a new financial ecosystem where technology, data, and capital converge to unlock opportunities for millions of businesses. As the company prepares to deploy the funds, stakeholders across the industry – from institutional investors to policy makers – will watch closely to see how this next chapter in fintech unfolds.

Stay tuned for more updates from CapitalConnect’s investor relations page (https://capitalconnect.com/investors) and follow the company’s developments on LinkedIn and Twitter.